As a seasoned analyst with over two decades of experience in the financial markets, I’ve witnessed numerous market fluctuations and trends. The recent surge in BlackRock’s Bitcoin Trust (IBIT) inflows is undeniably impressive, especially considering the broader crypto market retreat.
On October 21st, investors bought approximately 4,869 Bitcoins valued at around $329 million through BlackRock’s iShares Bitcoin Trust (IBIT). This action was taken as cryptocurrency markets were experiencing a downturn and U.S.-based Bitcoin exchange-traded funds faced outflows from competing products.
In other words, all funds except those managed by Fidelity experienced either no new investments or a decrease, leading to a grand total of $294.3 million being invested across all funds.
Blackrock Buys the dip! Buys 4869 #Bitcoin
— Thomas | heyapollo.com (@thomas_fahrer) October 22, 2024
BlackRock’s IBIT on a Roll
Over the past week, there’s been a continuous influx of funds into BlackRock, amounting to a staggering $1.47 billion across six consecutive trading days. Since its debut in January, IBIT has amassed over $23 billion through these inflows.
As an analyst, I’d rephrase that statement like this: Last week saw such significant investments in ETFs that, if we were discussing launches in 2024, these inflows would rank among the top five out of all 570 ETFs launched that year.
As an analyst, I’d like to share my insights from October 21st: Our fund had a stellar week, marking its strongest performance since March. Moreover, I’m proud to report that our Assets Under Management (AUM) now rank among the top 2% of all Exchange-Traded Funds (ETFs).
Furthermore, IBIT now ranks third among all trading ETFs for total inflows so far this year, outpacing the Vanguard Total Stock Market Index Fund (VTI) in this period.
$IBIT had one hell of a week, +$1.1b in new cash, best week since March, passed $VTI for 3rd place overall in YTD flows (insane for new launch, esp late in year, the rest of the top 5 is each over 20yrs and old and over $300b. $IBIT‘s aum is $26b which is in top 2% of all ETFs.
— Eric Balchunas (@EricBalchunas) October 21, 2024
As a researcher, I’d note that Fidelity’s Bitcoin ETF (FBTC) experienced a modest influx of approximately $5.9 million, marking its seventh consecutive day with positive trading figures. On the other hand, ETFs from Bitwise, Ark, 21Shares, VanEck, and Grayscale all witnessed outflows as the market adjusted.
On October 21st, Ethereum ETFs experienced a less than ideal day, with a total withdrawal of approximately $20.8 million as per preliminary data from Farside Investors. Meanwhile, Grayscale’s ETHE fund suffered a loss of around $29.6 million, counteracting the inflows for BlackRock (ETHA) and VanEck (ETHV).
The persistent withdrawal of funds from Grayscale, amounting to over $3 billion, appears to be causing a significant drop in all Ethereum investments. This trend is expected to persist as investors move their holdings away from the high-cost ETHE fund and distribute them among other options.
Crypto Market Pulls Back
On a day when the markets experienced a downturn and Bitcoin plummeted by approximately 3.3% from its recent peak of $69,300, dipping below $67,000 again, BlackRock saw an unusually large inflow of funds.
Anticipated due to increased leverage and Bitcoin futures contracts reaching new peaks, the retracement occurred. However, currently, Bitcoin is back on track, trading at approximately $67,500.
Alternative cryptocurrencies (altcoins) experienced more substantial declines than average, leading to significant losses for Ethereum, Near Protocol, Sui, and Litecoin. Consequently, the overall market capitalization fell to approximately $2.44 trillion.
Read More
- W PREDICTION. W cryptocurrency
- AEVO PREDICTION. AEVO cryptocurrency
- PENDLE PREDICTION. PENDLE cryptocurrency
- AAVE PREDICTION. AAVE cryptocurrency
- REF PREDICTION. REF cryptocurrency
- SBR PREDICTION. SBR cryptocurrency
- VR PREDICTION. VR cryptocurrency
- QNT PREDICTION. QNT cryptocurrency
- LDO PREDICTION. LDO cryptocurrency
- EUR PHP PREDICTION
2024-10-22 08:51